8,068 applications for planning permits in 2022

Demand for new planning permits took another dip in 2022 when compared to 2021, despite the recovery from the COVID-19 pandemic.

But requests for new permits remains higher than in every year between 2011 and 2016.

The number of planning applications had already dropped from a record 11,480 in 2018 to 8,981 in 2020 only to increase again to 9049 in 2021. This means that requests for planning permits in 2022 was the lowest in past four years.

Zoning applications meant to set future parameters for future developments have also declined from 120 in 2019 to 87 in 2021 and 79 in 2022.

The number of planning and zoning applications only offers an indication of the state of the construction industry. This is because planning permits are submitted for a wide range of works, ranging from new residential blocks to agricultural stores and reservoirs.

Moreover, not all permits are approved and works do not always commence immediately after approval. In fact, permits remain valid for five years after being issued and owners may bide for time to commence works.

But the number of planning applications does offer an indication of confidence in the property market and willingness of owners and developers to take risks.

Stakeholders in the sector confirmed that although the construction sector has remained resilient during the pandemic, it is passing through a ‘cooling-off’ period following a peak in 2018.

Factors which could have led to the dip in permit requests were the election which dominated the first quarter and inflationary pressures triggered by the war in Ukriane in the past year.

The number of permits being issued also raises issues of sustainability especially when one considers that the PA has received nearly 59,000 permit applications since 2017.

The upsurge in applications between 2017 and 2019 reflected demographic changes and economic growth in that period but also more liberal planning policies since 2013, which allowed five-storey developments inside development zones and outside urban conservation areas.